Chipmakers powered a broad rebound on Wall Street at midday Tuesday, lifting the Nasdaq 100 1.5% as fresh money for the artificial intelligence buildout pulled tech stocks higher.
Meta Platforms Inc. (META) sparked the move after a $25 billion share sale ended about five times oversubscribed. The suppliers got the reward:
Consumers Are Upbeat, Bonds Hold Steady
The Conference Board's consumer confidence index jumped to 91.7 in October from 84.2 in September, well above the 81 economists expected, as gasoline prices eased. Durable goods orders rose 1.8% in September, beating the 1.5% forecast.
The 10-year Treasury yield hovered at 4.99%, just below the 5% mark, while the 2-year yield rose 1 basis point to 4.73%. The 30-year yield was flat at 5.31%.
The Federal Reserve's two-day policy meeting began Tuesday. Chair Kevin Warsh will deliver a decision at a press conference on Wednesday, Oct. 28.
Oil Eases
Iranian military officials reportedly met with Saudi, Turkish and Pakistani officials in Tehran on Monday. West Texas Intermediate crude fell 1.7% to $100.03 a barrel, and Brent dropped 1.1% to $109.48.
Gold rose 0.9% to $4,075 an ounce, and silver edged up 0.4% to $54.55. Bitcoin (CRYPTO: BTC) gained 0.4% to $80,341.
The S&P 500 rose 0.7% to 7,732, adding 55 points.
The Dow Jones Industrial Average gained 0.2% to 52,459, as The Boeing Co. (BA) dragged. The planemaker now expects to reach a 737 production rate of 47 jets a month in early 2027 rather than this year, and guided to about $3 billion of free cash flow in 2027, well below consensus.
The stock fell 9.9%, on track for its worst session since April 3, 2025, and the slide erased about $14.5 billion of Boeing's market value by midday.
The Coca-Cola Co. (KO) slipped 0.6% despite beating third-quarter estimates and raising its earnings growth outlook.
Tesla Inc. (TSLA) led with a 3.6% gain, followed by Amazon.com Inc. (AMZN) and Alphabet Inc. (GOOGL), up 1.7% and 1.5%. The small-cap Russell 2000 advanced 1.1%, and the VIX fell 4.7% to 17.53.
Tuesday's Performance In Major US Indices
According to market data:
- The Vanguard S&P 500 ETF (VOO) rose 0.6%.
- The SPDR Dow Jones Industrial Average ETF Trust (DIA) edged up 0.1%.
- The Invesco QQQ Trust (QQQ) climbed 1.3%.
- The iShares Russell 2000 ETF (IWM) gained 1.1%.
Chipmakers Lead As Refiners Sink With Crude
Technology led the market. The Technology Select Sector SPDR Fund (XLK) rose 1.9% as the Meta investments revived the AI hardware trade, and the VanEck Semiconductor ETF (SMH) added 2.8%.
Energy lagged. The Energy Select Sector SPDR Fund (XLE) fell 1.9% as crude slipped, while the VanEck Oil Refiners ETF (CRAK) lost 2.9% as diesel and gasoline futures dropped about 2% and 1.5%.
Consumer discretionary, materials and industrials also rose between 0.4% and 0.9%, while consumer staples and real estate fell about 0.8% and financials and health care slipped.
Earnings Drive Major Moves
SoFi Technologies Inc. (SOFI) jumped 15.4% after third-quarter adjusted earnings of 18 cents per share topped the 17-cent estimate. The lender raised its 2026 earnings guidance to 61 cents and guided to about 90 cents for 2027, above the 81 cents analysts expected.
Pentair plc (PNR) rallied 12.8% after third-quarter sales beat estimates on growth in its water solutions business. The company reaffirmed its full-year adjusted earnings guidance of $4.70 per share and said pool destocking is complete.
AI infrastructure names extended the rebound. Applied Digital Corp. (APLD) rose 9.4% after closing Monday at its lowest level in a year, and Credo Technology Group Holding Ltd. (CRDO) gained 9%. Geothermal developer Fervo Energy Co. (FRVO) added 9.3%, alongside data-center power names.
On the Downside
Xylem Inc. (XYL) sank 11.5% after third-quarter revenue of $2.20 billion missed the $2.28 billion estimate. The water technology group cut its 2026 adjusted earnings guidance to $5.40 to $5.45 per share from $5.55 to $5.70.
Armstrong World Industries Inc. (AWI) fell 7.7% after adjusted earnings of $2.26 per share missed the $2.39 estimate and the company trimmed its full-year profit outlook on rising costs.
Valero Energy Corp. (VLO) dropped 7% with the refiners, as Phillips 66 (PSX) and Marathon Petroleum Corp. (MPC) each slid about 6%. Euronet Worldwide Inc. (EEFT) lost 6.4% after cutting its 2026 guidance on weakness in its cross-border payments business.
Looking Ahead
Visa Inc. (V) reports after the close, with analysts expecting fiscal fourth-quarter earnings of $3.44 per share. F5 Inc. (FFIV) ($4.26), Waste Management Inc. (WM) ($2.18) and CoStar Group Inc. (CSGP) (34 cents) also report.
Tuesday's Russell 1000 Top Gainers
Tuesday's Russell 1000 Top Losers
